Why do we offer incentive compensation? For most, we do it because we have always done it, so we keep doing it. Besides, —and here is the second reason— everyone else does. We are conditioned to do what is prevalent. Hey, no one ever got in trouble for doing what is market practice..
No one ever got in trouble for doing what is market practice.
What if variable pay (performance bonuses, annual incentives, profit sharing, etc.) was not market prevalent? Would it be a good idea to use incentives? Now the question becomes “do incentives work?” Do incentives succeed in achieving their stated objectives? A typical incentive scheme will have a stated objective such as “to encourage and reward performance improvement on an individual, unit or group level.” Has your organisation’s performance improved as a result of your incentive practices, or would you have achieved the same performance without incentives?
Performance does not automatically improve by simply having an incentive.
On Thursday, 14 September, Dr. Fermin Diez will share his doctoral research on Pay for Performance, and explain his findings on what works and what doesn’t, when it comes to incentives. He will break down team versus individual approaches, short- versus long-term, and various team approaches. Join us after work at the beautiful Royal Plaza on Scotts hotel, in the brand new Scotts Suite on level 2, for an evening of professional development and networking. Find out how to drive better company performance through smarter incentives.
Following Fermin’s presentation, Tom Farmer will present emerging alternatives to traditional merit pay, sharing a new salary increase matrix that directs larger increases to employees based on both performance and retention value.
We will end with a panel discussion, inviting two leading HR practitioners with extensive background in rewards—Lynette Ng of Sanofi, and Shiau Fei Lee of Mapletree. Dr. Diez will join the panel. Come, and bring your toughest questions for the experts!
Click here for event information on Mastering Pay for Performance. Register by 6 September (midnight) to receive a free copy of The Remuneration Handbook—International Edition, by Dr. Fermin Diez and Dr. Mark Bussin, a $50 value.